Addressing overallocation of water entitlements. Address by Ken Matthews Chairman & CEO National Water Commission

Transcription

1 Addressing overallocation of water entitlements Address by Ken Matthews Chairman & CEO National Water Commission CEDA Water Series Thursday 21 February 2008

2 Outline 1. What does the NWI say about overallocation? 2. What has the NWC said about it? 3. Some issues in overallocation 4. How does water planning work? 5. Are we overallocated? 6. Options for handling overallocation

3 Overallocation: Some Definitions If all entitlements were exercised, total extractions would exceed environmentally sustainable levels of extraction. Overuse: Total volume of water actually extracted exceeds environmentally sustainable levels of extractions. Environmentally Sustainable Levels of Extraction: Levels of extraction which will not compromise key environmental assets, ecosystem functions, or the productive base of the resource.

4 The National Water Initiative (NWI) A nationallycompatible market, regulatory and planning based system of managing surface and groundwater resources for rural and urban use that optimises economic, social and environmental outcomes Water Planning Water scarcity Water Markets Water Regulation

5 What does the NWI say? All currently overallocated or overused water systems to be returned to sustainable levels of extraction Substantially complete, by 2005, previous COAG plans to address overallocation Substantial progress towards dealing with remaining overallocation by 2010 All water allocations to be made consistent with a Water Plan Provide the same statutory basis for entitlements for consumptive use of water & environmental use. Assign risks of changes to the consumptive pool

6 Water Allocation Framework Consumptive Social Choices Environmental Shares not volumes

7 Can we take the politics out of water? Science, data and knowledge are essential But ultimately these are social (i.e., political) choices Which environmental assets should be nurtured? How big a red gum forest? How often a hatching or nesting event? What risk will be acceptable? What are the social, economic and indigenous implications? Hence, decisions should be science-informed but not sciencedetermined. Choices, judgements and trade-offs will always be required.

8 Biennial Assessment 2007 Some areas requiring improvement: Reducing the overallocation of water resources Improving the quality of water planning and the science that underpins it Improving the management of environmental water

9 Overallocation Some issues 1. No nationally adopted definition of overallocation 2. No nationally consistent method for calculating Sustainable Level of Extraction, nor agreement on how to approach it 3. Poor understanding of the services delivered by the environment 4. Water planning processes difficult and time-consuming 5. Science input to planning is not always adequate 6. Climate change is intensifying the problem

10 How does water planning for the environment work? 1. Identify environmental assets and ecosystems to be sustained taking account of non-linearities and resilience undertake an ecological risk assessment 2. Determine the water volumes and patterns to sustain them 3. Make the consumption / environment trade-offs transparent to clearly show the selected level of sustainability 4. Monitor outcomes and ensure feedback through adaptive management

11 How does water planning for the environment work? (2) Identify environmental assets and ecosystems to be sustained Monitor outcomes and ensure feedback through adaptive management Determine the water volumes and patterns to sustain them Make the consumption/ environment trade-offs transparent

12 Are we overallocated? Probably, but it s hard to say so analytically All states have now substantially introduced water planning regimes conforming with NWI requirements* However actual completion of water plans has lagged Science & data input to planning has been a concern CSIRO water availability study in MDB is a good model - Determines availability - But does not declare overallocations * WA & NT special cases

13 Are we overallocated? continued Some states argue that where a transparent, NWIconsistent planning process has resulted in entitlements there is by definition, no overallocation The environmental trade-off has been made transparent and found acceptable

14 AWR 2005 Stressed Systems

15 Options for handling overallocation 1. Allocate less per entitlement holder 2. Invest to improve irrigation system efficiency 3. Invest to improve efficiency of environment waterings 4. Extract more environmental benefits from consumptive water 5. Buy back entitlements on-market (and re-direct to the environment) 6. Revise Water Plans as they expire and then re-set entitlements 7. Compulsorily acquire certain entitlements eg, high salinity or low efficiency irrigation areas

16 Options for handling overallocation continued 8. Retire less viable irrigation districts 9. Compulsorily acquire a % of entitlements across the board (Mike Young) 10. Reduce target levels of reliability (security) 11. Suspend Water Plans and arbitrarily revise entitlements 12. Regulate water use to reduce consumption (eg no rice, or only if x ML/ha can be achieved 13. Lower our environmental aspirations

17 1. Allocate less per entitlement holder Environment Consumption 1 Degree of difficulty!

18 2. Invest to improve irrigation system efficiency - and direct savings to the environment Environment Consumption - or share savings with irrigation or urban areas Environment Consumption 34

19 3. Invest to improve efficiency of environment waterings Environment Consumption eg: science $, or wetland infrastructure 3

20 4. Extract more environmental benefits from consumptive water Environment Consumption eg: return flows from irrigation to the environment 4

21 5. Buy back entitlements on-market - and redirect to the environment Environment Consumption - or, share between environment and consumption Environment Consumption 34

22 6. Revise Water Plans as they expire and then re-set entitlements Environment Consumption avoids sovereign risk but takes years to complete 2

23 7. Compulsorily acquire certain entitlements Environment Consumption eg: in valleys shown to be grossly overallocated; or stranded irrigators 9

24 8. Retire less-viable irrigation districts Environment Consumption eg: high salinity or low efficiency irrigation areas 10

25 9. Compulsorily acquire a % of entitlements across the board Environment Consumption a Mike Young proposal 9

26 10. Reduce target levels of reliability (security) Environment Consumption 7

27 11. Suspend Water Plans and arbitrarily revise entitlements Environment Consumption a Mike Young proposal sovereign risk 10

28 12. Regulate water use to reduce consumption Environment Consumption eg: a ban on rice or cotton unless a target water efficiency level is reached 9

29 13. Lower our environmental aspirations Environment Consumption 9

30 So, which is best? Most options can play a part Some are radical and affect property rights and the necessary case for radical intervention would need to be made The CSIRO water availability study may begin to make the objective case for some change Site-specific ecological and river health studies will be necessary complements to the CSIRO work

31 Principles Maximise water security Minimise sovereign risk Maximise water use efficiency (environmental and consumptive) Maximise use of markets Minimise administrative / political discretion Maximise periods of notice Maximise science, knowledge input (hydrology and clear environmental outcomes) Maximise local planning participation Ensure adjustment assistance is in place

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